The lawsuit alleges Gildan presented its controls as effective under both U.S. Exchange Act rules and Canada’s National Instrument 52-109 while channel stuffing allegedly pulled roughly $500 million in revenue forward
NEW YORK, Oct. 26, 2026 (GLOBE NEWSWIRE) — Levi & Korsinsky, LLP notifies investors in Gildan Activewear Inc. (NYSE: GIL) that a securities class action has been filed on behalf of purchasers of Gildan securities between February 19, 2025 and June 15, 2026. Submit your information now or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
IMPORTANT DATE: December 14, 2026 is the final day for investors to ask the Court to appoint them lead plaintiff. GIL shares fell $11.63, or 18.7%, to close at $50.34 on June 16, 2026, after a short seller report alleged that roughly $500 million in revenue had been pulled forward out of 2026. The lawsuit contends that this loss followed two annual filings in which Gildan presented its controls as meeting U.S. and Canadian regulatory standards.
Cross-Border Compliance Representations at Issue
Gildan is incorporated in Canada, prepares its financial statements under International Financial Reporting Standards, and files annual reports with the SEC on Form 40-F. Its fiscal 2024 report defined internal control over financial reporting under Exchange Act Rules 13a-15(f) and 15d-15(f) and Canada’s National Instrument 52-109, and its fiscal 2025 report tied disclosure controls to that same Canadian instrument. The complaint alleges the effectiveness conclusions in both reports were materially false because Gildan was engaged in channel stuffing to create an appearance of revenue.
“Gildan’s regulatory filings reference both U.S. and Canadian disclosure-control frameworks and describe its internal controls as effective. The complaint alleges those assurances coexisted with a distributor that, according to the short report, was sitting on more than six months of unpaid Gildan product. Investors who bought during the Class Period deserve to know whether that compliance structure functioned as represented.” — Joseph E. Levi, Esq.
Gildan Regulatory Compliance Gaps Alleged by Plaintiffs
- Statutes invoked: The case, No. 1:26-cv-02126, is pending in the U.S. District Court for the Northern District of New York under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.
- Hanes carved out of the review: Gildan’s fiscal 2025 disclosure controls evaluation excluded HanesBrands, acquired December 1, 2025, which held approximately $2,470 million of current assets and $3,858 million of non-current assets. Plaintiffs allege material issues at Hanes, including channel stuffing, went undisclosed.
- Fraud-disclosure certifications: Both annual reports carried Sarbanes-Oxley certifications covering the accuracy of financial reporting and the disclosure of all fraud, which the action claims were false.
- Revenue booked on shipment: The short report cited in the complaint found no mention of inventory consignment in Gildan’s SEC filings and suggested consignment-like shipments may have been recorded as sales, while acknowledging it could not reach that conclusion with certainty.
- Compliance committee exits: The same report stated that all three seniormost members of Gildan’s Ethics and Fraud Compliance Committee appear to have resigned since the 2024 board refresh.
Find out if you might qualify to recover losses or call (212) 363-7500.
WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the GIL Lawsuit
Q: What is the GIL class action lawsuit about? A: A securities class action has been filed against Gildan Activewear Inc. (NYSE: GIL) alleging materially false and misleading statements between February 19, 2025 and June 15, 2026. Shares fell approximately 18.7% after a June 16, 2026 short seller report alleged that Gildan had stuffed its distributor channel with approximately $500 million in excess product. Investors who purchased shares during the Class Period and suffered losses may be eligible to seek compensation.
Q: Who is eligible to join the GIL investor lawsuit? A: Investors who purchased GIL stock or securities between February 19, 2025 and June 15, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses — not on whether you still hold the shares.
Q: What court was the GIL class action filed in? A: The case was filed in the United States District Court for the Northern District of New York, governed by the Private Securities Litigation Reform Act of 1995.
Q: What do GIL investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.
Q: What happens after I contact Levi & Korsinsky? A: An attorney will review your trading history at no cost and provide an initial assessment of your potential eligibility.
Q: What if I already sold my GIL shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor’s country of residence.
Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys’ fees and expenses subject to court approval.
CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
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